Lots of B & B's. We have stayed several times at The Heron House, a great little place on Simington St. Close to everything and just a block off Duval.
http://www.heronhouse.com/
If you like sea food try 7 Fish a great small place that has great fresh sea food. It's on Oliva St.
http://www.7fish.com/. Conch Republic has a great Happy Hour and great peel and eat shrimp, ask if thy have any Royal Reds and if they do have them hot with drawn butter.
If you have time stay at least two nights and three is better. Lots to see and do. Check out trip advisor for lots of good information,
http://www.tripadvisor.com/ShowForum...s_Florida.html
Key West is more of an attitude than a place.